We Know Not What Tomorrow Will Bring: Estate Planning
The ubiquitous media coverage of Michael Jackson’s death last week mentioned the plight of his children and the state of his financial assets and woes. This unfortunate situation should serve as a reminder that careful estate planning is not just for the wealthy or Hollywood Elite. Taking care of your affairs now ensures that your loved ones are cared for in the manner you wish once you pass.
Many people believe their estate automatically passes onto the spouse, when in fact the spouse may actually receive less than intended. In Connecticut and New York, the laws of "intestacy" (estates without a will) provide for fractional shares for the spouse if there are children. By contrast, many married couples who write wills give all to the other and only at the death of both do assets pass to the children. Without legal planning, how an estate will be distributed or who the administrator will be is determined by impersonal laws without considering individual circumstances..
Although there are no laws that require the assistance of an attorney in estate planning, we highly recommended it. A "do-it-yourself" will or generic trust may actually be more expensive than consulting a lawyer. Generic forms often do not address the legal requirements of New York or Connecticut. They also will not take into account individual wishes. And then, of course, there may be tax issues that will need to be resolved.
The death of a loved one is always difficult, but with no estate plan, the loss can be compounded by family squabbles and feelings of betrayal -- not to mention an overwhelming amount of paperwork.
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Image: Last will & testament of Alfred Nobels, dated November 27th, 1895. Courtesy Wikimedia
